Nippon Denko Co., Ltd. (JP:5563)
:5563
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Nippon Denko Co., Ltd.
(5563)
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Rating:63Neutral
Price Target:
¥509.00
▲(46.69% Upside)
Action:Reiterated
Date:03/05/26
The score is driven primarily by solid financial resilience (conservative leverage and improved 2025 cash generation) offset by materially weaker profitability versus prior peak years. Technicals are supportive with positive medium/long-term trends, while valuation is a notable headwind due to a high P/E despite a moderate dividend yield.
Positive Factors
Conservative Leverage
A substantially lower debt-to-equity ratio and conservative leverage provide durable financial resilience. This reduces interest burden, increases flexibility for capex or cyclical support, and lowers refinancing risk, enabling the business to withstand industry downturns without impairing operations.
Negative Factors
Flat-to-Declining Revenue
Persistent flat or slightly declining top-line reflects limited volume or pricing leverage amid weak steel end-market demand. Over the medium term this constrains scale economies, caps revenue growth potential, and makes margin recovery harder without structural demand improvement or product diversification.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Leverage
A substantially lower debt-to-equity ratio and conservative leverage provide durable financial resilience. This reduces interest burden, increases flexibility for capex or cyclical support, and lowers refinancing risk, enabling the business to withstand industry downturns without impairing operations.
Read all positive factors
Nippon Denko Co., Ltd. (5563) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥65.26B
Dividend Yield3.23%
Average Volume (3M)312.88K
Price to Earnings (P/E)22.9
Beta (1Y)0.91
Revenue Growth-3.24%
EPS Growth-39.60%
CountryJP
Employees783
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)22.42
Shares Outstanding137,386,470
10 Day Avg. Volume331,920
30 Day Avg. Volume312,880
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)0.67
Price to Sales (P/S)0.61
P/FCF Ratio4.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nippon Denko Co., Ltd. Business Overview & Revenue Model
Company Description
Nippon Denko Co., Ltd. (5563) is a Japanese company specializing in the manufacturing and supply of a range of industrial products, primarily focusing on materials and components for various sectors, including electronics, automotive, and energy. ...
How the Company Makes Money
The company makes money primarily through the sale of ferroalloy and related metallurgical products to customers such as steel manufacturers and other industrial users. Revenue is generated on a volume-and-price basis: customers purchase these mat...
Nippon Denko Co., Ltd. Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 79.84B | 77.28B | 78.23B | 78.39B | 79.34B | 65.98B |
| Gross Profit | 13.68B | 12.49B | 13.61B | 11.35B | 15.38B | 14.36B |
| EBITDA | 9.99B | 8.83B | 10.10B | 7.64B | 11.28B | 10.56B |
| Net Income | 3.08B | 1.42B | 3.14B | 4.33B | 7.95B | 7.77B |
Balance Sheet | ||||||
| Total Assets | 96.79B | 93.41B | 104.16B | 102.54B | 104.94B | 95.89B |
| Cash, Cash Equivalents and Short-Term Investments | 5.91B | 6.02B | 5.95B | 7.87B | 8.91B | 9.78B |
| Total Debt | 13.84B | 13.82B | 17.07B | 18.55B | 21.47B | 18.00B |
| Total Liabilities | 23.14B | 22.39B | 30.48B | 31.10B | 35.72B | 31.56B |
| Stockholders Equity | 73.66B | 71.03B | 73.68B | 71.44B | 69.19B | 64.26B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 9.74B | 1.66B | 3.98B | 1.74B | 2.53B |
| Operating Cash Flow | 0.00 | 14.57B | 5.96B | 8.78B | 6.28B | 5.25B |
| Investing Cash Flow | 0.00 | -5.58B | -4.85B | -4.67B | -4.59B | -2.21B |
| Financing Cash Flow | 0.00 | -8.91B | -3.06B | -5.24B | -2.68B | -2.92B |
Nippon Denko Co., Ltd. Technical Analysis
Positive
347.00
Price Trends
437.68
Positive
413.15
Positive
365.94
Positive
Market Momentum
12.59
Negative
58.55
Neutral
57.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5563, the sentiment is Positive. The current price of 347 is below the 20-day moving average (MA) of 451.00, below the 50-day MA of 437.68, and below the 200-day MA of 365.94, indicating a bullish trend. The MACD of 12.59 indicates Negative momentum. The RSI at 58.55 is Neutral, neither overbought nor oversold. The STOCH value of 57.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5563.
Nippon Denko Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥434.26B | 12.05 | ― | 3.26% | -6.84% | 4.65% | |
72 Outperform | ¥182.46B | 11.55 | 6.87% | 5.25% | -6.28% | 29.00% | |
71 Outperform | ¥180.09B | 27.66 | 5.06% | 1.80% | 1.69% | 71.95% | |
63 Neutral | ¥65.26B | 22.86 | 1.97% | 3.23% | -3.24% | -39.60% | |
62 Neutral | ¥371.52B | 11.21 | 6.16% | 2.99% | 0.55% | 20.51% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | ¥78.83B | 13.13 | ― | 3.70% | -2.40% | -8.59% |
* Basic Materials Sector Average
JP:5563
Nippon Denko Co., Ltd.
472.00
231.88
96.57%
JP:5471
Daido Steel Co
1,838.50
916.18
99.33%
JP:5451
Yodogawa Steel Works
1,193.00
172.18
16.87%
JP:5482
Aichi Steel Corporation
2,868.00
1,063.73
58.96%
JP:5440
Kyoei Steel Ltd.
1,841.00
16.52
0.91%
JP:5463
Maruichi Steel Tube Ltd.
1,832.00
724.05
65.35%
Nippon Denko Co., Ltd. Corporate Events
Nippon Denko Doubles Quarterly Profit and Raises Full-Year Earnings Outlook
May 12, 2026
Nippon Denko reported consolidated net sales of ¥19.4 billion for the three months ended March 31, 2026, essentially flat year on year, while operating profit nearly doubled to ¥2.0 billion and ordinary profit surged to ¥1.1 billion...
Nippon Denko Expands Restricted Stock Compensation With Treasury Share Disposal
Apr 27, 2026
Nippon Denko has approved the disposal of 91,800 treasury shares as restricted stock compensation for five internal directors, eight executive officers, and three executive counselors, at a price of 422 yen per share, totaling 38.74 million yen. T...
Nippon Denko Details Relationship and Transactions With Major Shareholder Nippon Steel
Mar 27, 2026
Nippon Denko Co., Ltd. disclosed details of its relationship with Nippon Steel Corporation, which holds a 25.3% voting stake and is classified as an other affiliated company, while emphasizing that this shareholding and alliance do not restrict Ni...
Nippon Denko Sets Agenda for 126th Shareholders Meeting in Tokyo
Feb 26, 2026
Nippon Denko will convene its 126th Annual General Meeting of Shareholders on March 27, 2026, in Tokyo, following a Board resolution on February 26, 2026. The meeting underlines the company’s long corporate history and ongoing engagement wit...
Nippon Denko to Maintain ¥7 Year-End Dividend with 100th Anniversary Payout
Feb 26, 2026
Nippon Denko Co., Ltd. has resolved to propose a year-end dividend of ¥7 per share for the fiscal year ended December 31, 2025, matching its previous forecast and the prior year’s payout. The distribution consists of an ordinary dividen...
Nippon Denko to Cut Legal Capital Surplus by ¥12 Billion in Balance-Sheet Reclassification
Feb 26, 2026
Nippon Denko Co., Ltd. plans to restructure its capital surplus to enhance the agility and flexibility of its future capital policy, while keeping overall net assets unchanged. The board has approved a proposal to reduce legal capital surplus by &...
Nippon Denko Lifts Dividend as Non-Ferroalloy Businesses Drive Stable Profit
Feb 24, 2026
Nippon Denko reported underlying ordinary profit of ¥5.3 billion for fiscal 2025, slightly up year on year and maintaining the ¥5.0 billion scale achieved since 2021, while accounting-basis ordinary profit fell to ¥2.7 billion due t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.